Li Auto Inc (NASDAQ: LI) has reported impressive financial results for the fourth quarter of fiscal 2023, showcasing robust revenue growth and strong performance in vehicle sales. The company’s revenue for the quarter surged by 136.4% year-on-year to $5.88 billion, surpassing analysts’ expectations.
Adjusted net earnings per ADS attributable to ordinary shareholders stood at $0.60 in the fourth quarter of 2023, leading to a positive market response with the stock price climbing after the results were announced. Vehicle sales saw a substantial increase of 133.8% to $5.69 billion, driven by a significant rise in vehicle deliveries. The total vehicle deliveries for the quarter reached 131,805 units, marking an impressive 184.6% year-on-year increase.
Moreover, Li Auto reported improvements in its margins, with the vehicle margin growing by 270 basis points year-on-year to 22.7% and the gross margin expanding by 330 basis points to 23.5%. Adjusted income from operations also saw a substantial increase of 579.3% year-on-year, reaching $544.1 million.
The company ended the quarter with cash and equivalents amounting to $14.60 billion and reported cash provided by operating activities of $2.44 billion, up by 251.1% year-on-year. Li Auto also expanded its retail and servicing network, with 467 retail stores covering 140 cities, 360 servicing centers, and authorized body and paint shops operating in 209 cities.
In January 2024, Li Auto delivered 31,165 vehicles, reflecting a 105.8% increase from the same period last year. Xiang Li, the chairman and chief executive officer of Li Auto, expressed his satisfaction with the company’s performance in 2023, highlighting the success of the Li L series models and the achievement of becoming the best-selling brand among NEVs priced above RMB300,000 in China.
Looking ahead, Li Auto expects first-quarter fiscal 2024 revenue in the range of $4.40 billion to $4.53 billion, representing a year-on-year increase of 66.3% to 71.3%. The company also anticipates first-quarter vehicle deliveries of 100,000 to 103,000 units, reflecting a substantial growth of 90.2% to 95.9% year-on-year.
Following the strong financial results and optimistic outlook, LI shares traded higher by 11.8% at $38.88 in premarket trading. Li Auto’s continuous growth trajectory and strategic initiatives position the company as a key player in the rapidly evolving electric vehicle market.
